Abstract

The case discusses the strategic pivot made by the largest athletic company in the world, Nike Inc. (Nike) from conventional wholesale distribution to a digital-first and direct-to-consumer (DTC) business model. Nike capitalized on technology, data analytics, and its brand ecosystem to strengthen customer engagement, enhance margins, and uphold cultural leadership as it executed its DTC strategy. The case examines the factors aiding the transformation, the challenges in execution, the risks of channel clashes, and the consequences for brand equity, customer reach, and competition in the industry. Students will learn to assess whether the change to DTC built up or weakened the Nike brand, the risks and opportunities that emerged, and how the path ahead appears for global brands that pursue a comparable strategy.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Examine the drivers and execution of a digital-first DTC strategy in a legacy consumer brand.
• Evaluate the risks and benefits of eliminating wholesale partners and going direct.
• Evaluate whether other brands can successfully replicate a direct-to-consumer strategy of Nike.
• Investigate how technology, data, and cultural engagement strengthen or challenge brand strength.

Keywords

Nike, retail, Direct-to-Consumer, DTC, Digital-First, technology, brand ecosystem, customer engagement, wholesale partners, digital transformation, brand strength, digital ecosystsem, channel conflict, brand accessibility, exclusivity,